LEAK: GOOGLE LAUNCHING AMAZON STYLE PRIME PROGRAM

Sources are saying that Google is in talks with various retailers and shippers to create a service that lets customers receive within 24 to 48 hours. According to sources cited by the Wall Street Journal, the company's effort is motivated by the success of Amazon's Prime service, which allows customers to receive many purchased items within a day or two for an annual fee of $79. Google, in turn, has apparently pitched the project to retailers such as Macy's, Gap and OfficeMax. Under the proposed system, when shoppers place an order on an affiliate's website, Google's system could kick in to offer them an option for same-day or possibly next-day delivery, said a person familiar with the matter. Sources indicated that Google plans to start a pilot test of the service in the San Francisco Bay Area sometime in 2012.

GAMEFLY SPENDS MORE ON SHIPPING PER MONTH THAN INCOME

If you’re a gamer, you’ve probably heard of Gamefly. If you haven’t, here it is in a nutshell: it’s Netflix for video games. For a monthly fee, gamers can rent games which are delivered by the US Postal Service; when they’re done with them, they just mail them back.

Gamefly mails out about over a million games a month. With that amount of shipping, you’d think that Gamefly must have a special deal inked with the USPS to deliver their games cheaply and efficiently… but they don’t, and Gamefly’s failure to get such a deal inked has them writing to the Postal Regulatory Commission for resolution.

Gamefly wants the US Postal Service to allow them to pay the same amount of shipping that Netflix pays. Why is this such a pressing issue for them? It’s more than just about maximizing profits: according to a letter sent anonymously to Ars Technica, Gamefly is currently spending more shipping discs every month than they are making in subscriber fees.

“At the company’s current volume of approximately 1.2 million shipments per month, the difference between the two-ounce flat rate of $1.05 that GameFly must pay to avoid automated letter processing for most of its DVD mailers, and the one-ounce letter rate of $0.44 that Netflix pays to avoid automated letter processing of return mailers, amounts to about $730,000,” wrote Gamefly in a complaint. “This amount represents more than 100 percent of GameFly’s monthly net income in 2011.”

While Gamefly characterizes the issue as one in which Netflix gets preferential treatment over their own service, the fact of the matter is that Netflix discs are mailed in packages that are brightly colored to assist in manual sorting, they’re lighter than GameFly mailers, and Netflix operates at a much higher volume than the game rental service.

While the issue is more complicated than GameFly wants to admit, one thing’s for sure: either GameFly figures a way to minimize shipping costs, or the company is going to fold. You might want to capitalize on your subscription while you can.

iPAD 2 SHORTAGE PUSHES SHIPPING DATES OUT 4 - 5 WEEKS

If you thought you’d just hold off until after the weekend rush had died down to head to your local Apple Store, Best Buy, Target, etc., you’re going to have to keep waiting. While Apple’s online store said the ship time was only a few days long on Friday’s launch day, waits are now between four weeks and five weeks for the new iPad.

The iPad 2’s sales went above and beyond industry expectations this past weekend, which left many store shelves empty before the weekend even ended. Online sales were backed up to two to three weeks before the iPad 2 was even available in retail stores. When the original iPad came out 11 months ago, Apple said it sold more than 300,000 on the first day, and 1 million after 28 days. Analysts say the iPad 2 sold 500,00 units in just its first day.

VERIZON iPHONE'S BEGIN SHIPPING; PRE-ORDERING HALTED

If you didn't pre-order our Verizon iPhone yet, it might be too late. Verizon has halted all pre-ordering, at least until February 9th when it will open for everyone.

If you were one of the lucky ones to get in the window of opportunity for pre-ordering, Verizon has begun shipping the devices. According to a person who pre-ordered their iPhone FedEx has begun sending shipping notices with a delivery date of February 7th, a full 3 days before the official launch of the highly anticipated device.

NOOK COLOR SHIPPING EARLY

The Nook Color, $249, has started to ship to pre-order customers. It was originally slated to begin shipping November 19th, however Barnes and Noble moved that date up by almost a week. In addition to those who pre-ordered or reserved their device, there will be limited quantities available through retail outlets like Best Buy, Barnes and Noble, Walmart and Books-A-Million. [Engadget]

RETAILERS TAKE ON AMAZON

A group of retailers have banded together to take on what they perceive to be their biggest threat....Amazon.  The group named ShopRunner, will offer membership for $79.  The membership entitles the member to free two day shipping from any of the retailers in ShopRunner.  The members will also get free returns as well.  Amazon has a similar program called Prime, but it doesn't include the returns benefit.  ShopRunner retail partners include Toys R Us, Babies R Us, Pet Smart, Dicks Sporting Goods, GNC, Sport Authority, Barnes & Noble, Radio Shack, AutoZone and others. [WSJ]